The adaptation of a new enterprise resource planning (ERP) system to Nautilus’ foreign operations has been postponed until 2007, after discovering material weakness in the related internal controls during its implementation in the USA during the 4th quarter of 2005. These findings have led the company to adjust its 4th quarter results. After the adjustment, the company reports full-year net sales of $631.3 million and a net income of $23.0 million.